Logistics is the design and management of a system to control the flow of materials within a business. This is a very important element in an international business due to geographical barriers. The logistics of an international business includes the movement of raw materials, coordination of inbound and outbound flows from different countries, transportation choices, cost of transportation, packaging the product for shipping, storing the product and managing the entire process. The concept of logistics is relatively new in the business world. The theoretical development was not used until 1966. Since then, many business practices have evolved and logistics currently costs between 10 and 25 percent of the total cost of an international purchase. There are two main phases that are important in the movement of materials: management and physical distribution. Materials management involves moving raw materials, parts, and supplies in a timely manner. Physical distribution is the movement of finished products from the company to customers. Both phases involve all stages of the process, including storage. The ultimate goal of logistics is to coordinate all company efforts to maintain a profitable flow of goods. There are four logistics concepts: the system concept, the total cost concept, the after-tax concept and the trade-off concept. The system concept is based on all functions of an organization working together to maximize benefits. This concept sometimes requires certain components of the organization to function suboptimal in order to achieve the maximum goals of the system. The concept of total cost is based on the system concept, but the achievement of objectives is measured in terms of cost. A variation of the total cost concept is the after-tax concept. The goal of this concept is profit after taxes. This concept is becoming very popular due to the many different national tax policies. The concept of compromise ties the system together in a very effective way, but can result in compromises that might prove ineffective. The benefits of such efficiency must be weighed against the risks involved. One of the main obstacles in international logistics is geography. The distance and manner in which materials should be shipped is the most important step in integration...... middle of paper ......management is based on the fact that a company must have a division that helps control local- adaptation needs. Dealing with different cultures requires the contribution of the local branch. Managers who deal with cultural differences on a daily basis generally know what works and what doesn't. Outsourcing is the last option for logistics management. When this happens, transportation companies focus on logistics and the company can focus on its production. This type of program provides many cost savings, but this lack of control can have a negative impact on many businesses. International logistics requires meeting many different options and requirements for a business to operate internationally. It's like a big puzzle that must be put together for all the objectives to be achieved. As described above, there are many options to consider, and sometimes what seems like an option actually isn't. It's not difficult to hit an obstacle and you have to start again with a new plan. Once the logistics plan is in place, you must constantly look for improvements to maximize profits and..